News

2012-12-24

International Real Estate Market Forecast

In Armenia the rise of housing prices is due to the formation of middle class and due to the growth of income. Besides the middle class, the rich class is actively building houses spending millions of dollars on it.

Rich people buy expensive houses in new buildings thanks to the huge construction that takes place. The boom in the sphere of apartments continued until the global economic crisis. After that "hit" the prices of apartment in Yerevan went down

Nearly the same was the situation in the internation real estate market after the global collapse, the detonator of which was the crisis in USA. According to «Tranio.Ru» analyses in the coming year there will be a fall in European real estate prices. With exception Germany, Latvia and Turkey.

Apartment price fall is predicted in the following countries Great Britain (on average 2%), France (5%), Spain (3%), Bulgaria (10%), Greece and Cyprus (7% -10%). In U.S., despite of the expected decline in Hurricane affected areas, prices may rise.

Bulgarian housing problems are similar to our problems. According to specialists’ opinion, previously real estate was valued three times higher, and after the global crises the prices went down by 40-50%. Moreover this process continues by 10% of annual price fall forecast. Therefore investments in this area are not considered economically feasible.

However, the majority of our citizens are first and foremost interested in Armenian real estate market predictions. In the center and in the suburbs the real estate prices have decrease, though the difference is quite significant. In general it can be said that the buyers move from "expensive" center to "cheap" suburbs.

The dynamics of housing prices in regions are changed due to the migration that increased in recent years. If, in the coming year migration will stay, than a fall in regional real estate is expected